119-s1488

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1488 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1488

 To amend the Foreign Agents Registration Act of 1938, as amended, to 
 clarify the exemption relating to commercial activities, to grant the 
 Attorney General authority to issue civil investigative demands under 
 that Act, and to create civil penalties for failure to meet the 
 registration requirements under that Act, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 10, 2025

Mr. Blumenthal introduced the following bill; which was read twice and 
 referred to the Committee on Foreign Relations

_______________________________________________________________________

 A BILL

 To amend the Foreign Agents Registration Act of 1938, as amended, to 
 clarify the exemption relating to commercial activities, to grant the 
 Attorney General authority to issue civil investigative demands under 
 that Act, and to create civil penalties for failure to meet the 
 registration requirements under that Act, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Sovereign Wealth Fund Transparency 
Act''.

SEC. 2. CLARIFICATION OF COMMERCIAL EXEMPTION.

 

Section 3 of the Foreign Agents Registration Act of 1938, as 
amended (22 U.S.C. 613), is amended, in the matter preceding subsection

    (a) , by inserting ``, except that the exemptions under paragraphs

    (1) and

    (2) of subsection
            (d) shall not apply to any agent of a foreign 
principal whose activities promote the public or political interests of 
a government of a foreign country or a foreign political party 
(including any and all activities undertaken on behalf of a sovereign 
wealth fund)'' before the colon at the end.

SEC. 3. AUTHORIZING THE ATTORNEY GENERAL TO ISSUE CIVIL INVESTIGATIVE 
 DEMANDS TO PROMOTE ENFORCEMENT OF DISCLOSURE REQUIREMENTS 
 FOR AGENTS OF FOREIGN PRINCIPALS.

    (a) Civil Investigative Demands Concerning Registration of Agents 
of Foreign Principals.--The Foreign Agents Registration Act of 1938, as 
amended (22 U.S.C. 611 et seq.) is amended--

    (1) by redesignating sections 9 through 14 as sections 10 
 through 15; and

    (2) by inserting after 

section 8 the following:

``

SEC. 9. CIVIL INVESTIGATIVE DEMANDS CONCERNING REGISTRATION OF AGENTS 
 OF FOREIGN PRINCIPALS.

 ``

    (a) Authority of the Attorney General.--
 ``

    (1) Authority described.--Whenever the Attorney General 
 or the Attorney General's designee has reason to believe that 
 any person may be in possession, custody, or control of any 
 documentary material, or may have any information, relevant to 
 an investigation under this Act, the Attorney General or 
 designee may, prior to the institution of a civil or criminal 
 proceeding by the United States thereon, issue in writing, and 
 cause to be served upon such person, a civil investigative 
 demand requiring such person to produce such documentary 
 material for inspection and copying or reproduction, to answer 
 in writing written interrogatories with respect to such 
 documentary material or information, to give oral testimony 
 concerning such documentary material or information, or to 
 furnish any combination of such material, answers, or 
 testimony. Whenever a civil investigative demand is an express 
 demand for any product of discovery, the Attorney General or 
 designee shall cause to be served, in any manner authorized by 
 this section, a copy of such demand upon the person from whom 
 the discovery was obtained and notify the person to whom such 
 demand is issued of the date on which such copy was served.
 ``

    (2) Limiting individuals who may serve as designees.--The 
 Attorney General may not designate any individual other than 
 the Assistant Attorney General for National Security or a 
 Deputy Attorney General to carry out the authority provided 
 under this section.
 ``

    (b) Contents and Deadlines.--
 ``

    (1) In general.--Each demand issued under subsection

    (a) shall--
 ``
        (A) state the nature of the conduct constituting 
 the alleged violation of this Act that is under 
 investigation and the provision of this Act alleged to 
 be violated;
 ``
        (B) if such demand is for the production of 
 documentary material--
 ``
            (i) describe each class of documentary 
 material to be produced with such definiteness 
 and certainty as to permit such material to be 
 fairly identified;
 ``
            (ii) prescribe a return date for each 
 such class that will provide a reasonable 
 period of time within which the material so 
 demanded may be assembled and made available 
 for inspection and copying or reproduction; and
 ``
            (iii) identify the custodian to whom such 
 material shall be made available;
 ``
            (C) if such demand is for answers to written 
 interrogatories--
 ``
            (i) set forth with specificity the 
 written interrogatories to be answered;
 ``
            (ii) prescribe dates at which time 
 answers to written interrogatories shall be 
 submitted; and
 ``
            (iii) identify the custodian to whom such 
 answers shall be submitted; and
 ``
            (D) if such demand is for the giving of oral 
 testimony--
 ``
            (i) prescribe a date, time, and place at 
 which oral testimony shall be commenced;
 ``
            (ii) identify an investigator who shall 
 conduct the examination and the custodian to 
 whom the transcript of such examination shall 
 be submitted;
 ``
            (iii) specify that such attendance and 
 testimony are necessary to the conduct of the 
 investigation;
 ``
            (iv) notify the person receiving the 
 demand of the right to be accompanied by an 
 attorney and any other representative; and
 ``
            (v) describe the general purpose for 
 which the demand is being issued and the 
 general nature of the testimony, including the 
 primary areas of inquiry, which will be taken 
 pursuant to the demand.
 ``

    (2) Product of discovery.--Any civil investigative demand 
 issued under this section that is an express demand for any 
 product of discovery shall not be returned or returnable until 
 20 days after a copy of such demand has been served upon the 
 person from whom the discovery was obtained.
 ``

    (3) Date.--The date prescribed for the commencement of 
 oral testimony pursuant to a civil investigative demand issued 
 under subsection

    (a) shall be a date that is not less than 7 
 days after the date on which demand is received, unless the 
 Attorney General or the Attorney General's designee determines 
 that exceptional circumstances are present which warrant the 
 commencement of such testimony within a lesser period of time.
 ``

    (4) Notification.--The Attorney General shall not 
 authorize the issuance under this section of more than 1 civil 
 investigative demand for oral testimony by the same person 
 unless the person requests otherwise or unless the Attorney 
 General, after investigation, notifies that person in writing 
 that an additional demand for oral testimony is necessary.
 ``
            (c) Protected Material or Information.--
 ``

    (1) In general.--A civil investigative demand issued 
 under subsection

    (a) may not require the production of any 
 documentary material, the submission of any answers to written 
 interrogatories, or the giving of any oral testimony if such 
 material, answers, or testimony would be protected from 
 disclosure under--
 ``
        (A) the standards applicable to subpoenas or 
 subpoenas duces tecum issued by a court of the United 
 States in aid of a grand jury investigation; or
 ``
        (B) the standards applicable to discovery 
 requests under the Federal Rules of Civil Procedure, to 
 the extent that the application of such standards to 
 any such demand is appropriate and consistent with the 
 provisions and purposes of this Act.
 ``

    (2) Effect on other orders, rules, and laws.--Any such 
 demand that is an express demand for any product of discovery 
 supersedes any inconsistent order, rule, or provision of law 
 (other than this Act) preventing or restraining disclosure of 
 such product of discovery to any person. Disclosure of any 
 product of discovery pursuant to any such express demand does 
 not constitute a waiver of any right or privilege, including 
 without limitation any right or privilege which may be invoked 
 to resist discovery of trial preparation materials, to which 
 the person making such disclosure may be entitled.
 ``
            (d) Service; Jurisdiction.--
 ``

    (1) By whom served.--Any civil investigative demand 
 issued under subsection

    (a) may be served by an appropriate 
 investigator, or by a United States marshal or deputy marshal, 
 at any place within the territorial jurisdiction of any court 
 of the United States.
 ``

    (2) Service in foreign nations.--Any such demand or 
 petition filed under subsection

    (k) may be served upon any 
 person who is not to be found within the territorial 
 jurisdiction of any court of the United States, in such manner 
 as the Federal Rules of Civil Procedure prescribe for service 
 in a foreign country. To the extent that the courts of the 
 United States can assert jurisdiction over any such person 
 consistent with due process, the United States District Court 
 for the District of Columbia shall have the same jurisdiction 
 to take any action respecting compliance with this Act by any 
 such person that such court would have if such person were 
 personally within the jurisdiction of such court.
 ``

    (e) Service Upon Legal Entities and Natural Persons.--
 ``

    (1) Legal entities.--Service of any civil investigative 
 demand issued under subsection

    (a) or of any petition filed 
 under subsection

    (k) may be made upon a partnership, 
 corporation, association, or other legal entity by--
 ``
        (A) delivering a duly executed copy of such 
 demand or petition to any partner, executive officer, 
 managing agent, or general agent of the partnership, 
 corporation, association, or entity, or to any agent 
 thereof authorized by appointment or by law to receive 
 service of process on behalf of such partnership, 
 corporation, association, or entity;
 ``
        (B) delivering a duly executed copy of such 
 demand or petition to the principal office or place of 
 business of the partnership, corporation, association, 
 or entity to be served; or
 ``
            (C) depositing an executed copy of such demand or 
 petition in the United States mails by registered or 
 certified mail, with a return receipt requested, duly 
 addressed to such partnership, corporation, 
 association, or entity at its principal office or place 
 of business.
 ``

    (2) Natural persons.--Service of any such demand or 
 petition may be made upon any natural person by--
 ``
        (A) delivering a duly executed copy of such 
 demand or petition to the person to be served; or
 ``
        (B) depositing an executed copy of such demand or 
 petition in the United States mails by registered or 
 certified mail, with a return receipt requested, duly 
 addressed to such person at the person's residence or 
 principal office or place of business.
 ``

    (f) Proof of Service.--A verified return by the individual 
serving any civil investigative demand under subsection

    (a) or any 
petition filed under subsection

    (k) setting forth the manner of such 
service shall be proof of such service. In the case of service by 
registered or certified mail, such return shall be accompanied by the 
return post office receipt of delivery of such demand.
 ``

    (g) Documentary Material.--
 ``

    (1) Sworn certificates.--The production of documentary 
 material in response to a civil investigative demand served 
 pursuant to this section shall be made under a sworn 
 certificate, in such form as the demand designates, by--
 ``
        (A) in the case of a natural person, the person 
 to whom the demand is directed; or
 ``
        (B) in the case of a person other than a natural 
 person, a person having knowledge of the facts and 
 circumstances relating to such production and 
 authorized to act on behalf of such person,
 to the effect that all of the documentary material required by 
 the demand and in the possession, custody, or control of the 
 person to whom the demand is directed has been produced and 
 made available to the custodian.
 ``

    (2) Production of materials.--Any person upon whom any 
 civil investigative demand for the production of documentary 
 material has been served under this section shall make such 
 material available for inspection and copying to the 
 investigator identified in such demand at the principal place 
 of business of such person, or at such other place as the 
 investigator and the person thereafter may agree and prescribe 
 in writing, or as the court may direct under subsection

    (k)

    (1) . 
 Such material shall be made so available on the return date 
 specified in such demand, or on such later date as the 
 investigator may prescribe in writing. Such person may, upon 
 written agreement between the person and the investigator, 
 substitute copies for originals of all or any part of such 
 material.
 ``

    (h) Interrogatories.--
 ``

    (1) Answers.--Each interrogatory in a civil investigative 
 demand served pursuant to this section shall be answered 
 separately and fully in writing under oath, and it shall be 
 submitted under a sworn certificate, in such form as the demand 
 designates, by--
 ``
        (A) in the case of a natural person, the person 
 to whom the demand is directed; or
 ``
        (B) in the case of a person other than a natural 
 person, the person or persons responsible for answering 
 each interrogatory.
 ``

    (2) Contents of certificates.--The certificate submitted 
 under paragraph

    (1) shall state that all information required 
 by the demand and in the possession, custody, control, or 
 knowledge of the person to whom the demand is directed has been 
 submitted. To the extent that any information is not furnished, 
 the information shall be identified and reasons set forth with 
 particularity regarding the reasons why the information was not 
 furnished.
 ``

    (3) Objections.--If any interrogatory is objected to, the 
 reasons for the objection shall be stated in the certificate 
 instead of an answer.
 ``
            (i) Oral Examinations.--
 ``

    (1) Procedures.--The examination of any person pursuant 
 to a civil investigative demand for oral testimony served under 
 this section shall be taken before an officer authorized to 
 administer oaths and affirmations by the laws of the United 
 States or of the place where the examination is held. The 
 officer before whom the testimony is to be taken shall put the 
 witness on oath or affirmation and shall personally, or by 
 someone acting under the direction of the officer and in the 
 officer's presence, record the testimony of the witness. The 
 testimony shall be taken stenographically and transcribed. When 
 the testimony is fully transcribed, the officer before whom the 
 testimony is taken shall promptly transmit a copy of the 
 transcript of the testimony to the custodian. This subsection 
 shall not preclude the taking of testimony by any means 
 authorized by, and in a manner consistent with, the Federal 
 Rules of Civil Procedure.
 ``

    (2) Persons present.--The investigator conducting the 
 examination shall exclude from the place where the examination 
 is held all persons except the person giving the testimony, the 
 attorney for and any other representative of the person giving 
 the testimony, the attorney for the Government, any person who 
 may be agreed upon by the attorney for the Government and the 
 person giving the testimony, the officer before whom the 
 testimony is to be taken, and any stenographer taking such 
 testimony.
 ``

    (3) Where testimony taken.--The oral testimony of any 
 person taken pursuant to a civil investigative demand served 
 under this section shall be taken in the judicial district of 
 the United States within which such person resides, is found, 
 or transacts business, or in such other place as may be agreed 
 upon by the investigator conducting the examination and such 
 person.
 ``

    (4) Transcript of testimony.--When the testimony is fully 
 transcribed, the investigator or the officer before whom the 
 testimony is taken shall afford the witness (who may be 
 accompanied by counsel) a reasonable opportunity to examine and 
 read the transcript, unless such examination and reading are 
 waived by the witness. Any changes in form or substance which 
 the witness desires to make shall be entered and identified 
 upon the transcript by the officer or the investigator with a 
 statement of the reasons given by the witness for making such 
 changes. The transcript shall then be signed by the witness, 
 unless the witness in writing waives the signing, is ill, 
 cannot be found, or refuses to sign. If the transcript is not 
 signed by the witness within 30 days after being afforded a 
 reasonable opportunity to examine it, the officer or the 
 investigator shall sign it and state on the record the fact of 
 the waiver, illness, absence of the witness, or the refusal to 
 sign, together with the reason, if any, given therefor.
 ``

    (5) Certification and delivery to custodian.--The officer 
 before whom the testimony is taken shall certify on the 
 transcript that the witness was duly sworn by the officer and 
 that the transcript is a true record of the testimony given by 
 the witness, and the officer or investigator shall promptly 
 deliver it or send it by registered or certified mail to the 
 custodian.
 ``

    (6) Furnishing or inspection of transcript by witness.--
 Upon payment of reasonable charges therefor, the investigator 
 shall furnish a copy of the transcript to the witness only, 
 except that the Attorney General, or the Attorney General's 
 designee in accordance with this Act, may for good cause limit 
 such witness to inspection of the official transcript of the 
 witness's testimony.
 ``

    (7) Conduct of oral testimony.--
 ``
        (A) In general.--Any person compelled to appear 
 for oral testimony under a civil investigative demand 
 issued under subsection

    (a) may be accompanied, 
 represented, and advised by counsel. Counsel may advise 
 such person, in confidence, with respect to any 
 question asked of such person. Such person or counsel 
 may object on the record to any question, in whole or 
 in part, and shall briefly state for the record the 
 reason for the objection. An objection may be made, 
 received, and entered upon the record when it is 
 claimed that such person is entitled to refuse to 
 answer the question on the grounds of any 
 constitutional or other legal right or privilege, 
 including the privilege against self-incrimination. 
 Such person may not otherwise object to or refuse to 
 answer any question, and may not directly or through 
 counsel otherwise interrupt the oral examination. If 
 such person refuses to answer any question, a petition 
 may be filed in the district court of the United States 
 under subsection

    (k)

    (1) for an order compelling such 
 person to answer such question.
 ``
        (B) Compelled testimony.--If such person refuses 
 to answer any question on the grounds of the privilege 
 against self-incrimination, the testimony of such 
 person may be compelled in accordance with the 
 provisions of part V of title 18, United States Code.
 ``

    (8) Witness fees and allowances.--Any person appearing 
 for oral testimony under a civil investigative demand issued 
 under subsection

    (a) shall be entitled to the same fees and 
 allowances which are paid to witnesses in the district courts 
 of the United States.
 ``

    (j) Custodians of Documents, Answers, and Transcripts.--
 ``

    (1) Designation.--The Attorney General, or designee in 
 accordance with this Act, shall designate an investigator to 
 serve as custodian of documentary material, answers to 
 interrogatories, and transcripts of oral testimony received 
 under this section, and shall designate such additional 
 investigators as the Attorney General determines from time to 
 time to be necessary to serve as deputies of the custodian.
 ``

    (2) Responsibility for materials; disclosure.--
 ``
        (A) In general.--An investigator who receives any 
 documentary material, answers to interrogatories, or 
 transcripts of oral testimony under this section shall 
 transmit them to the custodian. The custodian shall 
 take physical possession of such material, answers, or 
 transcripts and shall be responsible for the use made 
 of them and for the return of documentary material 
 under paragraph

    (4) .
 ``
        (B) Preparation.--The custodian may cause the 
 preparation of such copies of such documentary 
 material, answers to interrogatories, or transcripts of 
 oral testimony as may be required for official use by 
 any investigator, or other officer or employee of the 
 Department of Justice. Such material, answers, and 
 transcripts may be used by any such authorized 
 investigator or other officer or employee in connection 
 with the taking of oral testimony under this section.
 ``
            (C) No examination.--Except as otherwise provided 
 in this subsection, no documentary material, answers to 
 interrogatories, or transcripts of oral testimony, or 
 copies thereof, while in the possession of the 
 custodian, shall be available for examination by any 
 individual other than an investigator or other officer 
 or employee of the Department of Justice authorized 
 under subparagraph
        (B) . The prohibition in the 
 preceding sentence on the availability of material, 
 answers, or transcripts shall not apply if consent is 
 given by the person who produced such material, 
 answers, or transcripts, or, in the case of any product 
 of discovery produced pursuant to an express demand for 
 such material, consent is given by the person from whom 
 the discovery was obtained. Nothing in this 
 subparagraph is intended to prevent disclosure to the 
 Congress, including any committee or subcommittee of 
 the Congress, or to any other agency of the United 
 States for use by such agency in furtherance of its 
 statutory responsibilities.
 ``
            (D) Examination by certain persons.--While in the 
 possession of the custodian and under such reasonable 
 terms and conditions as the Attorney General shall 
 prescribe--
 ``
            (i) documentary material and answers to 
 interrogatories shall be available for 
 examination by the person who produced such 
 material or answers, or by a representative of 
 that person authorized by that person to 
 examine such material and answers; and
 ``
            (ii) transcripts of oral testimony shall 
 be available for examination by the person who 
 produced such testimony, or by a representative 
 of that person authorized by that person to 
 examine such transcripts.
 ``

    (3) Use of material, answers, or transcripts in other 
 proceedings.--Whenever any attorney of the Department of 
 Justice has been designated to appear before any court, grand 
 jury, or Federal agency in any case or proceeding, the 
 custodian of any documentary material, answers to 
 interrogatories, or transcripts of oral testimony received 
 under this section may deliver to such attorney such material, 
 answers, or transcripts for official use in connection with any 
 such case or proceeding as such attorney determines to be 
 required. Upon the completion of any such case or proceeding, 
 such attorney shall return to the custodian any such material, 
 answers, or transcripts so delivered that have not passed into 
 the control of such court, grand jury, or agency through the 
 introduction thereof into the record of such case or 
 proceeding.
 ``

    (4) Conditions for return of material.--If any 
 documentary material has been produced by any person in the 
 course of any investigation pursuant to a civil investigative 
 demand under this section, and--
 ``
        (A) any case or proceeding before the court or 
 grand jury arising out of such investigation, or any 
 proceeding before any Federal agency involving such 
 material, has been completed; or
 ``
        (B) no case or proceeding in which such material 
 may be used has been commenced within a reasonable time 
 after completion of the examination and analysis of all 
 documentary material and other information assembled in 
 the course of such investigation,
 the custodian shall, upon written request of the person who 
 produced such material, return to such person any such material 
 (other than copies furnished to the investigator under 
 subsection

    (g)

    (2) or made for the Department of Justice under 
 paragraph

    (2)
        (B) of this subsection) that has not passed into 
 the control of any court, grand jury, or agency through 
 introduction into the record of such case or proceeding.
 ``

    (5) Appointment of successor custodians.--
 ``
        (A) In general.--In the event of the death, 
 disability, or separation from service in the 
 Department of Justice of the custodian of any 
 documentary material, answers to interrogatories, or 
 transcripts of oral testimony produced pursuant to a 
 civil investigative demand under this section, or in 
 the event of the official relief of such custodian from 
 responsibility for the custody and control of such 
 material, answers, or transcripts, the Attorney General 
 or the Attorney General's designee in accordance with 
 this Act shall promptly--
 ``
            (i) designate another investigator to 
 serve as custodian of such material, answers, 
 or transcripts; and
 ``
            (ii) transmit in writing to the person 
 who produced such material, answers, or 
 testimony notice of the identity and address of 
 the successor so designated.
 ``
        (B) Successor.--Any person who is designated to 
 be a successor under this paragraph shall have, with 
 regard to such material, answers, or transcripts, the 
 same duties and responsibilities as were imposed by 
 this section upon the predecessor in office of that 
 person, except that the successor shall not be held 
 responsible for any default or dereliction that 
 occurred before that designation.
 ``

    (k) Judicial Proceedings.--
 ``

    (1) Petition for enforcement.--Whenever any person fails 
 to comply with any civil investigative demand issued under 
 subsection

    (a) , or whenever satisfactory copying or 
 reproduction of any material requested in such demand cannot be 
 done and such person refuses to surrender such material, the 
 Attorney General may file, in the district court of the United 
 States for any judicial district in which such person resides, 
 is found, or transacts business, and serve upon such person a 
 petition for an order of such court for the enforcement of the 
 civil investigative demand.
 ``

    (2) Petition to modify or set aside demand.--
 ``
        (A) In general.--Any person who has received a 
 civil investigative demand issued under subsection

    (a) may file, in the district court of the United States 
 for the judicial district in which such person resides, 
 is found, or transacts business, and serve upon the 
 investigator identified in such demand a petition for 
 an order of the court to modify or set aside such 
 demand. In the case of a petition addressed to an 
 express demand for any product of discovery, a petition 
 to modify or set aside such demand may be brought only 
 in the district court of the United States for the 
 judicial district in which the proceeding in which such 
 discovery was obtained is or was last pending. Any 
 petition under this subparagraph must be filed--
 ``
            (i) within 20 days after the date of 
 service of the civil investigative demand, or 
 at any time before the return date specified in 
 the demand, whichever date is earlier; or
 ``
            (ii) within such longer period as may be 
 prescribed in writing by any investigator 
 identified in the demand.
 ``
        (B) Grounds for relief.--The petition shall 
 specify each ground upon which the petitioner relies in 
 seeking relief under subparagraph
        (A) , and may be based 
 upon any failure of the demand to comply with the 
 provisions of this section or upon any constitutional 
 or other legal right or privilege of such person. 
 During the pendency of the petition in the court, the 
 court may stay, as it deems proper, the running of the 
 time allowed for compliance with the demand, in whole 
 or in part, except that the person filing the petition 
 shall comply with any portions of the demand not sought 
 to be modified or set aside.
 ``

    (3) Petition to modify or set aside demand for product of 
 discovery.--
 ``
        (A) In general.--In the case of any civil 
 investigative demand issued under subsection

    (a) that 
 is an express demand for any product of discovery, the 
 person from whom such discovery was obtained may file, 
 in the district court of the United States for the 
 judicial district in which the proceeding in which such 
 discovery was obtained is or was last pending, and 
 serve upon any investigator identified in the demand 
 and upon the recipient of the demand, a petition for an 
 order of such court to modify or set aside those 
 portions of the demand requiring production of any such 
 product of discovery. Any petition under this 
 subparagraph must be filed--
 ``
            (i) within 20 days after the date of 
 service of the civil investigative demand, or 
 at any time before the return date specified in 
 the demand, whichever date is earlier; or
 ``
            (ii) within such longer period as may be 
 prescribed in writing by any investigator 
 identified in the demand.
 ``
        (B) Grounds for relief.--The petition shall 
 specify each ground upon which the petitioner relies in 
 seeking relief under subparagraph
        (A) , and may be based 
 upon any failure of the portions of the demand from 
 which relief is sought to comply with the provisions of 
 this section, or upon any constitutional or other legal 
 right or privilege of the petitioner. During the 
 pendency of the petition, the court may stay, as it 
 deems proper, compliance with the demand and the 
 running of the time allowed for compliance with the 
 demand.
 ``

    (4) Petition to require performance by custodian of 
 duties.--At any time during which any custodian is in custody 
 or control of any documentary material or answers to 
 interrogatories produced, or transcripts of oral testimony 
 given, by any person in compliance with any civil investigative 
 demand issued under subsection

    (a) , such person, and in the 
 case of an express demand for any product of discovery, the 
 person from whom such discovery was obtained, may file, in the 
 district court of the United States for the judicial district 
 in which the office of such custodian is situated, and serve 
 upon such custodian, a petition for an order of such court to 
 require the performance by the custodian of any duty imposed 
 upon the custodian by this section.
 ``

    (5) Jurisdiction.--Whenever any petition is filed in any 
 district court of the United States under this subsection, such 
 court shall have jurisdiction to hear and determine the matter 
 so presented, and to enter such order or orders as may be 
 required to carry out the provisions of this section. Any final 
 order so entered shall be subject to appeal under 

section 1291 
 of title 28, United States Code. Any disobedience of any final 
 order entered under this section by any court shall be punished 
 as a contempt of the court.
 ``

    (6) Applicability of federal rules of civil procedure.--
 The Federal Rules of Civil Procedure shall apply to any 
 petition under this subsection, to the extent that such rules 
 are not inconsistent with the provisions of this section.
 ``
            (l) Disclosure Exemption.--Any documentary material, answers to 
written interrogatories, or oral testimony provided under any civil 
investigative demand issued under subsection

    (a) shall be exempt from 
disclosure under 

section 552 of title 5, United States Code, as 
described in subsection

    (b)

    (3) of such section.
 ``
            (m) === Definitions. ===
-In this section--
 ``

    (1) the term `custodian' means the custodian, or any 
 deputy custodian, designated by the Attorney General under 
 subsection

    (j)

    (1) ;
 ``

    (2) the term `documentary material' includes the original 
 or any copy of any book, record, report, memorandum, paper, 
 communication, tabulation, chart, or other document, or data 
 compilations stored in or accessible through computer or other 
 information retrieval systems, together with instructions and 
 all other materials necessary to use or interpret such data 
 compilations, and any product of discovery;
 ``

    (3) the term `investigation' means any inquiry conducted 
 for the purpose of ascertaining whether any person is or has 
 been engaged in any violation of this Act;
 ``

    (4) the term `investigator' means any attorney or 
 investigator employed by the Department of Justice who is 
 charged with the duty of enforcing or carrying into effect this 
 Act, or any officer or employee of the United States acting 
 under the direction and supervision of such attorney or 
 investigator in connection with an investigation;
 ``

    (5) the term `official use' means any use that is 
 consistent with the law, and the regulations and policies of 
 the Department of Justice, including use in connection with 
 internal Department of Justice memoranda and reports; 
 communications between the Department of Justice and a Federal, 
 State, or local government agency, or a contractor of a 
 Federal, State, or local government agency, undertaken in 
 furtherance of a Department of Justice investigation or 
 prosecution of a case; oral examinations; depositions; 
 preparation for and response to civil discovery requests; 
 introduction into the record of a case or proceeding; 
 applications, motions, memoranda and briefs submitted to a 
 court or other tribunal; and communications with Government 
 investigators, auditors, consultants and experts, the counsel 
 of other parties, arbitrators and mediators, concerning an 
 investigation, case or proceeding; and
 ``

    (6) the term `product of discovery' includes--
 ``
        (A) the original or duplicate of any deposition, 
 interrogatory, document, thing, result of the 
 inspection of land or other property, examination, or 
 admission, which is obtained by any method of discovery 
 in any judicial or administrative proceeding of an 
 adversarial nature;
 ``
        (B) any digest, analysis, selection, compilation, 
 or derivation of any item listed in subparagraph
        (A) ; 
 and
 ``
            (C) any index or other manner of access to any 
 item listed in subparagraph
        (A) .
 ``

    (n) Sunset.--The authority of the Attorney General to issue a 
civil investigative demand under this section shall expire upon the 
expiration of the 5-year period that begins on the date of enactment of 
this section.''.

    (b) Annual Reports by the Attorney General.--

    (1) === Definitions. ===
-For purposes of this subsection:
        (A) Appropriate committees of congress.--The term 
 ``appropriate committees of Congress'' means--
            (i) the Committees on the Judiciary and 
 Foreign Relations of the Senate; and
            (ii) the Committee on the Judiciary of the 
 House of Representatives.
        (B) Documentary material; investigation.--The terms 
 ``documentary material'' and ``investigation'' have the 
 meanings given those terms in 

section 9 of the Foreign 
 Agents Registration Act of 1938, as added by subsection

    (a) of this section.
            (C) Foreign agents registration act of 1938.--The 
 term ``Foreign Agents Registration Act of 1938'' means 
 the Foreign Agents Registration Act of 1938, as amended 
 (22 U.S.C. 611 et seq.).
            (D) Foreign principal.--The term ``foreign 
 principal'' has the meaning given the term in 

section 1 
 of the Foreign Agents Registration Act of 1938 (22 
 U.S.C. 611).

    (2) Reports.--Not later than 1 year after the date of 
 enactment of this Act, and annually thereafter, the Attorney 
 General, in consultation with the Assistant Attorney General 
 for National Security, shall submit a report to the appropriate 
 committees of Congress detailing the usage, during the year 
 preceding the date on which the report is submitted, of the 
 authority granted to the Attorney General to issue civil 
 investigative demands under 

section 9 of the Foreign Agents 
 Registration Act of 1938, as added by subsection

    (a) of this 
 section, including, with respect to the year for which the 
 report is submitted--
        (A) the number of civil investigative demands 
 issued by the Attorney General;
        (B) with respect to each civil investigative demand 
 issued by the Attorney General, a description of--
            (i) the nature of the conduct constituting 
 the alleged violation of the Foreign Agents 
 Registration Act of 1938 that was under 
 investigation;
            (ii) the provision of that Act alleged to 
 have been violated;
            (iii) the nature of any documentary 
 material, answers to interrogatories, or oral 
 testimony sought through the civil 
 investigative demand; and
            (iv) a description of the results of the 
 civil investigative demand, including whether, 
 after the Attorney General issued the civil 
 investigative demand and as a result of the 
 civil investigative demand, the Attorney 
 General filed charges against any person 
 relating to an alleged violation of that Act, 
 regardless of whether the charges were filed 
 against the person to whom the civil 
 investigative demand was issued;
            (C) with respect to petitions for orders for the 
 enforcement of civil investigative demands under 
 

section 9

    (k)

    (1) of the Foreign Agents Registration Act 
 of 1938--
            (i) the number of petitions that the 
 Attorney General filed in district courts of 
 the United States; and
            (ii) with respect to each petition, a 
 detailed description of the circumstances that 
 led the Attorney General to file the petition;
            (D) the number of registrations filed pursuant to 
 the Foreign Agents Registration Act of 1938 and the 
 name of each such registrant; and
        (E) any other information relating to the use of 
 such authority that the Attorney General determines to 
 be relevant.

    (3) Interests of uncharged third parties.--In preparing 
 each report under paragraph

    (2) , with respect to reporting 
 information described in clauses
            (i) and
            (ii) of paragraph

    (2)
        (B) , the Attorney General shall give due regard to 
 protecting the interests of uncharged third parties.

SEC. 4. FOREIGN AGENTS REGISTRATION CIVIL ENFORCEMENT.

 

Section 8 of the Foreign Agents Registration Act of 1938, as 
amended (22 U.S.C. 618) is amended by adding at the end the following:
 ``
            (i) Civil Enforcement.--
 ``

    (1) Civil penalties.--
 ``
        (A) Registration statements.--
 ``
            (i) In general.--Any person who is 
 required to register under this Act and fails 
 to file a timely or complete registration 
 statement required under 

section 2

    (a) shall be 
 subject to a civil fine of not more than 
 $10,000 for each violation, without regard to 
 the state of mind of the person.
 ``
            (ii) No fines paid by foreign 
 principals.--If a person is subject to a civil 
 fine under clause
            (i) , the civil fine may not 
 be paid, directly or indirectly, by a foreign 
 principal.
 ``
        (B) Supplements.--Any person who is required to 
 file a supplement to a registration statement under 
 

section 2

    (b) and fails to file a timely or complete 
 supplement required under that section shall be subject 
 to a civil fine of not more than $1,000 for each 
 violation, without regard to the state of mind of the 
 person.
 ``
            (C) Failure to remedy deficient filings.--Any 
 person who is required to file a registration statement 
 under this Act, receives notice under subsection

    (g) that the registration statement filed by the person is 
 deficient, and knowingly fails to remedy the deficiency 
 within 60 days after receiving the notice shall, upon 
 proof by a preponderance of the evidence of such 
 knowing failure to remedy the deficiency, be subject to 
 a civil fine of not more than $200,000, depending on 
 the extent and gravity of the violation.
 ``
            (D) Other violations.--Any person who knowingly 
 fails to comply with any other provision of this Act 
 shall, upon proof by a preponderance of the evidence of 
 such knowing failure to comply, be subject to a civil 
 fine of not more than $200,000, depending on the extent 
 and gravity of the violation.
 ``

    (2) Use of fines.--All fines collected under this 
 subsection shall be used to defray the cost of enforcing this 
 Act.''.
 <all>